The Directorate of Enforcement (ED) has arrested Sravanthi Group promoter Dandamudi Venkateswara Rao (D.V. Rao), Director D. Shanthi Kiran, and D.V. Rao’s brother D. Avanindra Kumar in connection with an alleged ₹284 crore money laundering case linked to large-scale financial fraud and diversion of funds.
According to the ED, all three accused have been remanded to custody by the Special Court till May 12, 2026.
The investigation originated from an FIR registered at Sector-40 Police Station, Gurugram, alleging that DJW Electric Power Projects Pvt Ltd, controlled by D.V. Rao, fraudulently availed loans from multiple entities. The ED said the total loan fraud under investigation is estimated at around ₹58 crore.
During the probe, investigators allegedly found misuse of the RTGS banking system. While accounting records showed loan repayments to lenders, ED claimed the RTGS mandates carried bank account details of Kolkata-based shell companies instead of genuine lenders. Funds were allegedly diverted to entities including Nexus International, Bhavtarini Sales Pvt Ltd and Gabel Trading Co.
The agency further stated that a parallel money laundering probe involving Sravanthi Energy Private Limited (SEPL) uncovered proceeds of crime worth around ₹228 crore.
ED alleged that SEPL fraudulently paid nearly ₹75 lakh per month as “consultancy fees” to a shell company named Verset Technologies Pvt Ltd, which reportedly had no office or employees and was registered in the name of D.V. Rao’s father-in-law. Investigators claim this arrangement led to diversion of nearly ₹89.36 crore.
The probe also reportedly found fake purchase transactions worth over ₹139 crore through invoices issued by more than 100 shell entities without actual supply of goods or services.
According to ED, D.V. Rao had earlier defaulted on massive bank loans, resulting in SEPL turning into a non-performing asset (NPA). The agency alleged that banks later entered into one-time settlements causing losses exceeding ₹1,500 crore to the banking system.
The agency further claimed that while the company was under financial stress, funds were siphoned off for personal enrichment, allegedly impacting both banks and investors. ED noted that several PSU banks hold minority stakes in the company.
Earlier searches conducted in the case led to seizure of gold and diamond jewellery worth around ₹5 crore and multiple luxury vehicles linked to the accused and their family members.
The ED had also attached immovable and movable assets worth around ₹24 crore, including residential properties, warehouse assets, and agricultural and industrial land spread across Andhra Pradesh, Telangana and Karnataka.
Investigators additionally alleged attempts to influence the ongoing probe. ED claimed D.V. Rao remained absconding despite repeated summons, leading to issuance of a non-bailable warrant by the court.
The agency also alleged that D.V. Rao’s brother, D.A. Kumar, played an active role in obstructing the investigation. During a search operation, ED reportedly recovered ₹1 crore cash from premises linked to an associate. Statements recorded under PMLA allegedly indicated that cash was used to influence certain persons connected to the proceedings.
